Critical Analysis: Marriott International (NASDAQ:MAR) & Sands China (OTCMKTS:SCHYY)

Sands China (OTCMKTS:SCHYY) and Marriott International (NASDAQ:MAR) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Dividends

Sands China pays an annual dividend of $0.54 per share and has a dividend yield of 2.1%. Marriott International pays an annual dividend of $2.68 per share and has a dividend yield of 0.9%. Marriott International pays out 28.3% of its earnings in the form of a dividend. Marriott International has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for Sands China and Marriott International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sands China	0	3	0	1	2.50
Marriott International	0	10	5	3	2.61

Marriott International has a consensus target price of $289.87, indicating a potential downside of 2.15%. Given Marriott International’s stronger consensus rating and higher possible upside, analysts clearly believe Marriott International is more favorable than Sands China.

Insider & Institutional Ownership

70.7% of Marriott International shares are owned by institutional investors. 10.7% of Marriott International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Sands China has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sands China and Marriott International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sands China	$7.08 billion	2.90	$1.05 billion	N/A	N/A
Marriott International	$25.93 billion	3.07	$2.38 billion	$9.47	31.28

Marriott International has higher revenue and earnings than Sands China.

Profitability

This table compares Sands China and Marriott International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sands China	N/A	N/A	N/A
Marriott International	10.07%	-89.29%	10.12%

Summary

Marriott International beats Sands China on 13 of the 16 factors compared between the two stocks.

About Sands China

Sands China Ltd. develops, owns, and operates integrated resorts and casinos in Macao. It owns and operates The Venetian Macao, The Londoner Macao, The Parisian Macao resort, The Plaza Macao, and The Sands Macao casino; the Cotai Expo, a convention and exhibition hall; and the Cotai Arena and the Londoner Arena entertainment venues, as well as Cotai Water Jet ferry for leisure and business travelers. It also offers ferry transportation and leasing services, and pontoon leasing; gaming and other related activities; travel and tourism agency services; security services; human resources administration services; and mall management services, as well as outsourcing services, including information technology, accounting, hotel management, and marketing. The company was incorporated in 2009 and is headquartered in Taipa, Macau. Sands China Ltd. is a subsidiary of Las Vegas Sands Corp.

About Marriott International

Marriott International, Inc. engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St. Regis Longboat Key brand names, as well as operates residences, timeshares, and yachts. The company was founded in 1927 and is headquartered in Bethesda, Maryland.